The Philippines is developing rapidly. The citizens are talented, particularly with the English language, and many foreign entrepreneurs have been utilizing this effectively.

If you’ve been thinking about starting a business in Philippines, the Wood Egg Philippines startup guide will be your go-to reference manual.

Each year we hire 3 researchers (at least one local and one foreigner who live in Philippines), a native English-speaking in-country writer, and an editor, to bring you insights from multiple perspectives.

Our researchers spend over 200 hours interviewing local business people, politicians, and citizens who regular foreigners would never have access to. This is 200+ hours you will save to hit the ground running. (Bonus: When you register your eBook at WoodEgg.com you get access to all of our raw research and interviews.)

In the 2014 Wood Egg Philippines startup guide you will learn:

What the anti-corruption efforts mean for the people and for your business. (Page 7)

Why the slow change from a conservative society is good for foreign investors. (Page 45)

Why it’s best not to attract attention to yourself (and how to blend in). (Page 91)

Save time and headaches by choosing one of our 14 recommended apartment buildings when visiting for short or long terms. (Page 125)

How to know when a “yes” means “no” and why this is important in your business dealings. (Page 180)

The distinct advantage foreigners have when doing business in the Philippines. (Page 215)

The best way to set up your company in the increasingly foreigner-friendly system. (Page 246)

These four accountancy firms are well suited to working with foreigners. (Page 298)

How to deal with the enormous labor-related challenges currently affecting the area. (Page 318)

You must have this to open a bank account in the Philippines. (Page 348)

How to know when (or if) you should use English in your marketing efforts. (Don’t ignore this.) (Page 382)

All of this along with hundreds of other insights. All told you’ll get the painstakingly researched answers to over 200 questions (over 400 pages!) about country, culture, life, and business in Philippines.

If you’re looking to do business in Philippines you won’t find a more complete, up-to-date, guide.

Click one of the “buy now” links, above, to buy it at LeanPub, Amazon, or Apple iBooks.

Contents

Country

Current stats

What is the size of Philippines in square km? What is the distance (in km) from east to west? What is the distance (in km) from north to south?

What is the total population of Philippines? What are the top ethnic groups and religions as a percentage of population?

What are the economic statistics of Philippines? Gross domestic product (GDP)? Average income per-person? National debt? Growth percentage of last two years?

Quick history as it affects current business environment

Give a short modern history of Philippines - just enough for basic conversational knowledge and context.

Give a short history of Philippines’s last 5 years, focusing on aspects that would affect small business owners.

How has the recent history of the country affected people in terms of their living and business environment?

2014 zeitgeist

Give an overview of the current 2014 political, societal, and economic condition of Philippines, focusing on aspects that would affect small business owners.

Near-future outlook

What social changes in Philippines seem very likely in the next five years?

What economic changes in Philippines seem very likely in the next five years?

What political changes in Philippines seem very likely in the next five years?

Relationship with other countries

What is Philippines’s relationship with Hong Kong? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with Indonesia? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with Malaysia? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with Singapore? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with Taiwan? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with China? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with India? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with Australia? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

What is Philippines’s relationship with the United States? Cooperative or competitive? Similarities or differences? What is the main trade between the two?

Culture

Mindset

Describe the mindset of most people in Philippines. Progressive or conservative? Future-focused or present-focused? Work-focused or pleasure-focused? Optimistic or cautious? Pressing for change, or maintaining traditions? Strict or easy-going? Or, if the mindset is very divided between groups, please describe the divide. (Feel free to just share your personal opinion.)

What are some of the major internal conflicts that Philippines is going through now? (Between political parties, age generations, demographics, ideologies, etc.) Summarize each side’s argument.

Is it taboo to talk about Philippines’s government?

How would you describe the views of the general public about the government of Philippines?

Religion and Race

What role does religion play in day-to-day life?

Are there any types of businesses that are not welcome or looked down upon due to religious reasons?

How does religion affect business dealings? Times or days when people do not do business for religious reasons? Any religious rituals that businesses follow?

Asia 101

What basic cultural norms do you think foreigners should know about working with people in Asia in general?

What basic cultural norms do you think foreigners should know about working with people in Philippines, as compared to Asia in general?

What are some of the most common mannerisms when meeting with people?

When people go out to eat or drink together, how is it decided who pays? (Describe business and personal situations separately.)

Individualism

As compared to American individualism, Philippines is more of a community/group-focused culture. Describe these differences from a local point of view.

Local differences

What are the cultural differences between people in Philippines and China?

What are the cultural differences between people in Philippines and Hong Kong?

What are the cultural differences between people in Philippines and India?

What are the cultural differences between people in Philippines and Indonesia?

What are the cultural differences between people in Philippines and Malaysia?

What are the cultural differences between people in Philippines and Singapore?

What are the cultural differences between people in Philippines and Taiwan?

What are the cultural differences between people in Philippines and the United States?

Personal attitudes towards foreigners

How do people view foreign tourists in Philippines?

What is the common opinion about foreign workers, coming to Philippines to work? Is it a business threat? Is it a cultural threat?

What is the common opinion about foreign entrepreneurs, coming to Philippines to set up a business?

Which foreigners are generally most welcome? Which foreigners are generally least welcome?

What to wear

What is the most appropriate business/meeting clothing for men in Philippines? What would be considered too casual or disrespectful?

What is the most appropriate business/meeting clothing for women in Philippines? What would be considered too casual or disrespectful?

How can you tell by their clothing that someone is high-status or low-status?

Attitude towards time and promises

What is the Philippines attitude towards punctuality? For example, if two people agreed on an 11:00 business meeting, what time range to arrive would be considered acceptable? What is considered late?

What is the Philippines attitude towards promises? Are you expected to stick to your promise, no matter what? Or is it common to change your mind?

Common conversational references

What is a common Philippines expression that a foreigner might not understand?

How to blend in

How can a foreigner blend in to Philippines? What advice would you give foreigners on how not to stick out so much?

How can a foreigner become a part of the business community in Philippines? What is a good way to meet many people and make connections?

When not to blend in

Is it best for a foreigner doing business in Philippines to blend in? Or is there an advantage to not blending in?

Recommended reading/watching

What books, magazines, newspapers, or websites would you recommend a foreign entrepreneur read to better understand Philippines and its business environment?

Life

Quality of life

Describe the general quality of life in Philippines (Utilities, cleanliness, safety, amenities, physical comfort.) If very different in different areas, describe each separately.

Which parts of Philippines have the nicest quality of life? Which parts have the worst? Describe each.

Cost of living

What is the average cost of rent for a 1-bedroom (unfurnished) apartment? What is the average cost for an unfurnished small house (or large apartment) for a 5-person family?

What would it cost per-month for one person to live a nice, but not luxurious, life in Philippines? Include food, utilities, transportation.

What length of time is a usual contract when renting an apartment or house?

Western standards vs local standards

How does the general quality of life in Philippines compare to America, Australia, or Europe? (Utilities, cleanliness, safety, amenities, physical comfort.)

What safety precautions would you recommend for a foreigner?

Language / English proficiency

Do most people in the cities of Philippines speak English?

If someone came to Philippines only speaking English, how difficult would it be to live and work?

Is it common for merchants to charge foreigners more if they speak in English?

Safety

Which parts of Philippines are safest? Which parts are unsafe? Describe each.

How do people in Philippines deal with petty crimes like theft?

How can one generally distinguish friend from foe? Any signs to consider, or scams to beware of?

Immigration / Visa

How can a foreign entrepreneur live and work in Philippines for a few years? Do they need a work visa, investor visa, tourist visa, or something else?

How can someone get a visa to live in Philippines long-term?

Where to live (short-term and long-term)

What are some serviced apartments or furnished homes in the business district that can be rented month-by-month, for short-term (say 3 month) visits? Give examples and prices.

Where should someone live to be in the middle of the most business, the most action, and to meet the most people? What specific neighborhoods?

Where should someone live to be near to the business action, but to be a little outside, in a neighborhood that’s better for children?

What are some places a foreigner should not stay, because of their lack of proximity, safety, or other reasons?

Typical living arrangements

What is a typical living arrangement in Philippines? Do most people live in houses or apartments?

Do families usually live together with parents, grandparents, kids, and siblings - or do they tend to live separately?

Transportation

How do working people normally get around? (Car? Bus? Train? Taxi? Bicycle? Walk?)

What is the recommended transportation for someone coming to work in Philippines? (Car? Bus? Train? Taxi? Rented car? Please describe options, prices, and recommendations.)

Internet / Phone

What are the most popular mobile phone/data providers in Philippines? Which one would you recommend?

How much does it cost for a basic broadband (cable/fiber) internet connection in a home or office? Name speeds and prices.

How much does it cost for a mobile data plan (3G) for heavy internet use through a mobile phone? Describe the current best plans.

Food

What’s the typical cuisine of Philippines?

Is it easy to find western food? Are there western restaurants? Western food in supermarkets?

What’s the etiquette of using your hands or utensils for eating? Any inappropriate manners that foreigners often have?

Credit card? Cash? Check?

How do most people pay for things? Cash? Credit card? Check? Something else?

What is the easiest way to get cash in Philippines? Are ATMs the best option?

Availability of products/services

What goods and services that Western people are used to are not available in Philippines?

What’s not online

What kinds of day-to-day necessary things do people do online? (Meaning: not just fun/social, but like online banking, shopping, paying bills, using maps/location services, etc.)

Differences in service standards

What’s the difference in customer service between US/Australia/Europe and Philippines? More service? Less service?

Is good customer service a necessary part of successful business dealings?

Expat community

Are there a lot of foreign expats in Philippines?

Where do expats live in Philippines?

Where do expats hang out in Philippines?

Recommended resources

What are some good books that describe the life and culture of Philippines?

What are some good internet resources that help describe life in Philippines?

Business Culture

Mindset

Summarize the business mindset of people in Philippines. Ruthless? By-the-book? Improvisational? Considerate?

Are there any particular business dealings that foreigners should not get involved in?

Direct vs indirect communication

Is direct communication (saying exactly what is meant) considered rude?

How can someone understand the meaning behind indirect communication? Any hints to help translate?

How to tell “yes” from “no”

People used to very direct communication find it hard to understand when someone with a more indirect communication style has told them “yes” or “no”. Give examples of some indirect statements that actually mean “yes”, and indirect statements that actually mean “no”.

Hierarchy

How important is hierarchy in business in Philippines?

Is it disrespectful for a foreigner to deal in business with a certain class of people?

Give an example of a business situation where the norms of hierarchy are not followed, (by a foreigner who doesn’t understand), and explain how they should be followed according to the norms of Philippines.

Who to speak with in organizations

When a foreigner wants to do business with a Philippines company, who should they contact? Go directly to the top? Start in the middle?

Are personal recommendations important in doing business with new companies or can they be reached purely on a basis of business?

Business attitudes towards foreigners

What is the general attitude of businesses in Philippines towards foreigners coming to Philippines to do business?

Signals of respect

What are some social etiquette actions that show respect for someone?

What are some social actions that would be taken as disrespectful?

How do people in Philippines express anger? Do they usually stay quiet or express their feelings openly?

How do people view laughter in Philippines? What kinds of jokes are not acceptable?

How to build trust

How can a foreigner doing business in Philippines build trust with local businesses or people?

Is it important to make local friends in order to spread your business?

Introductions

What is the standard polite way of doing business introductions? (If someone asks you to introduce them to another business person you know.)

Business cards

How important are business cards (name cards) in Philippines? Do most people have them?

What is the standard business card format in Philippines? What information goes on it? Bi-lingual with one language on each side?

Are there proper manners for how to give your business card to someone, and how to receive someone’s card?

Negotiation

Give some insight and advice about business negotiations in Philippines.

Signaling success

How can you tell that a person is successful? Clothing? Manners? Neighborhood? Events? Friends?

Innovation vs status quo

Do you feel that business is Philippines is attracted to innovation, or attracted to the status quo?

Passing-through vs Full-time

Is there a stigma against business people that are just passing through Philippines, looking for opportunities, versus foreigners who live there?

What advantages do foreigners who live full-time in Philippines have over those who just visit?

Advantages to foreigners

What advantages do foreigners have (versus locals) when doing business in Philippines?

Advantages to locals

What advantages do local people have (versus foreigners) when doing business in Philippines?

Risks

What are the top risks of doing business in Philippines?

Corruption

How pervasive is corruption in business in Philippines? Can you give some examples? (Change the details to protect people.)

Government

General role of government

How involved is the government in the dealings of small business?

Is the government of Philippines open to foreign businesses or restrictive?

Who’s who: departments you need to know

What government departments will a small business probably need to interact with? Please describe each.

What are some government regulations that need to be considered by foreign businesses?

What the government is emphasizing now

What sectors is the government emphasizing development now? Any current mission or push?

Incentives

What government incentives are available to new or small businesses now?

Do many small businesses use government incentives?

Grants

What government grants are available to new or small businesses now?

Do many small businesses use government grants?

Business Setup

Ease of doing business

How does Philippines rank on the “Ease of Doing Business” index?

What’s the hardest part about doing business in Philippines?

What’s the easiest part about doing business in Philippines?

Local partners?

If a foreigner is starting a business in Philippines, is it required to have a local partner? Or does the government allow foreign-controlled businesses?

Business structure choice

What are the options for business structures in Philippines? (Sole proprietor? Partnership? Corporation? Other?)

What are the advantages and disadvantages of each kind of business structure in Philippines?

Business name choice

Any advice on naming a business in Philippines? Are English names OK, or should they be localized?

What are some mistakes that foreign businesses have made when naming a business in Philippines?

Timeline

How long does it generally take to incorporate a business structure in Philippines?

Cost

What does it cost to incorporate a business structure in Philippines? (Including all service fees, helper fees, government fees, etc.)

Incorporating

How does a foreigner create a business structure in Philippines?

Where to locate

How should a new business decide where to locate in Philippines?

Real estate

How much does it cost to rent a typical 4-person office space in Philippines? Give a range from center-city expensive to outlying-area cheap.

Can a foreign investor easily buy property for business in Philippines or renting is the only option?

Big city vs outlying areas

What are the advantages and disadvantages of locating a new business in the big city versus the outlying areas?

What your location says about your business

Does business location (center of biggest city versus outlying areas) communicate something about the business itself?

Which neighborhood or street has the most prestige?

Utilities

How can a new office get set up with electricity, internet, phone, and other important utilities? Describe the utility companies and summary of process for each.

Will a foreigner have a problem getting utilities for the business? If so, what solution would you recommend?

Permits

How can a new business find out which permits are necessary to do their business?

How can a new business get all the permits they need?

Contracts

Are contracts respected in Philippines? Or are they often ignored if need be?

Lawyers

Which lawyers or law firms are best to help foreign entrepreneurs in Philippines?

Accountants

Which accountants or accountancy firms are best to help foreign entrepreneurs in Philippines?

Paying taxes

What are the current tax rates for businesses in Philippines?

Are the taxes different in different regions in Philippines?

How do business owners pay their taxes?

Ongoing requirements

Besides paying taxes, what ongoing maintenance bureaucracy is required by the government for small businesses?

Recommended resources

What books describe doing business in Philippines?

What internet resources help someone doing business in Philippines?

Hiring

Local talent strengths

What are the main strengths of the local talent in Philippines? Any particular skills or fields more developed or emphasized?

Hiring local people

What is the best way to hire local employees?

How much to pay?

What is the average salary for a mildly skilled worker in Philippines? (Say: basic administrative tasks.)

What is the average salary for a very skilled worker in Philippines? (Say: an experienced manager.)

How to find good people?

What’s the best way to find and hire exceptionally smart and talented workers in Philippines?

Online vs offline

How much of the finding and hiring of employees is done online? Is it rare or common to have job openings posted online?

What websites do people use for posting jobs / finding jobs / hiring employees?

Hiring foreign people

How can a Philippines business hire a foreign employee? What are the requirements, steps, costs, and time?

Step-by-step process

What processes or documents are required for hiring an employee?

Labor laws

What hours do most people work? (9am-5pm?) What days do most people work? (Monday-Friday? Also Saturday?)

Is it very common to work overtime? (Extra hours at night, or extra days per week?)

Give a summary of the most important labor laws in Philippines - that a small-business employer should know.

Payroll

What processes or documents are required for paying an employee? Do taxes need to be withheld or paid? Any ongoing forms to file?

Unions

Are there labor unions in Philippines that will affect employees of small business?

Firing

What processes or documents are required for firing an employee?

Recommended resources

What local companies or people can help with hiring?

Money

Banking overview

Give an overview of the availability and quality of small-business banking in Philippines.

Bank comparison

Compare the top three choices for small business banking in Philippines. Funds required? Costs? Online access? Visa/Mastercard debit card given?

How to open an account

What requirements do the banks have for opening a business account?

Any additional requirements for a foreigner to open a business bank account?

Online banking

How much of banking can be done online? Outgoing payments? International wires (telegraphic transfer)?

Paying employees

What is the usual way for a business to pay employees in Philippines? What payment method and how often?

Paying vendors

What is the usual way for a business to pay vendors in Philippines? Bank transfer? Paper check? Visa/Mastercard?

Getting a bank loan

How can a small business get a bank loan in Philippines?

Getting investors

How can a small business get investors in Philippines?

What if they don’t pay?

What legal procedures should be followed to ensure that customers pay as promised?

If customers don’t pay, what methods are used to get them to pay?

Industry sectors

Industries

What are the main exports of Philippines?

What industries are very well-developed in Philippines?

What’s missing?

What industries are not very well-developed in Philippines, and have much room to grow?

What useful services or products are missing in Philippines now?

What industries have the most opportunity in Philippines right now?

What’s unique?

What services or products are unique to Philippines? Any particular business or service that exists in Philippines, that you’ve never heard of anywhere else?

Growing the Business

Marketing

What methods do local businesses use for marketing their business?

What language should local marketing use?

Expanding outside the country

Do many businesses in Philippines expand outside the country?

What are the best ways to sell local products from Philippines to other countries?